USD Little Changed via Quiet FX Markets...

Somewhat quiet FX market conditions prevail today as the USD is little changed versus the majors. The yen is slightly weaker versus the USD as the market expects the BoJ current QE program will fall short of its 2% inflation goal. Today’s FOMC minutes release is expected the re-affirm the Fed’s tapering stance which is expected to point to an eventual USD-positive market. The pound is slightly weaker o/n after the U.K. unemployment rate unexpectedly increased in Q4’13, suggesting the recent improvement in the labor market is losing momentum. CAD is trading above the key 1.1000 level after the release of Canada's wholesale trade report showed a much lower than expected plunge (-1.4% versus the expected -0.6% level). China’s central bank (PBoC) announced plans to expand the yuan’s trading band later this year in an “orderly” manner as it moves toward a more convertible currency. The current daily trading band is 1%, and is expected to expand to 2%.

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Somewhat quiet FX market conditions prevail today as the USD is little changed versus the majors. The yen is slightly weaker versus the USD as the market expects the BoJ current QE program will fall short of its 2% inflation goal. Today’s FOMC minutes release is expected the re-affirm the Fed’s tapering stance which is expected to point to an eventual USD-positive market. The pound is slightly weaker o/n after the U.K. unemployment rate unexpectedly increased in Q4’13, suggesting the recent improvement in the labor market is losing momentum. CAD is trading above the key 1.1000 level after the release of Canada's wholesale trade report showed a much lower than expected plunge (-1.4% versus the expected -0.6% level). China’s central bank (PBoC) announced plans to expand the yuan’s trading band later this year in an “orderly” manner as it moves toward a more convertible currency. The current daily trading band is 1%, and is expected to expand to 2%.